A LEVEL ACCOUNTING HELPPPPP

[lxelle]

http://papers.xtremepapers.com/CIE/...AS Level/Accounting (9706)/9706_w10_qp_12.pdf
QUESTION 5 and 20 pleaseeee.

Thanks.

 

[mastermindAsh]

Hi Ixelle...here are the solutions:
Question5- For simplicity use the Trade receivables a/c where the opening BAL is $46000, credit sales $280000 (80 % of Total sales)
Now concerning Receipts!! - 98% represent $303 800 and so find for 100% which is $310000 which is credited in the TR a/c and so finally the ans is B.

Question20- make sure u know that bonus issue does not affect the cash balance. Consider the following steps.
S1- Work out the bonus issue first:
S2- Find the no of shares held @ present i.e 150 000 shares
S3- Find the no of bonus shares which is 150000/3= 50 000 bonus shares
S4- Find the bonus shares value which is 50 000 x$1= $ 50 000
S5 - Then CR OSC by 50 000 and DR the Share premium by 50 000, u`ll notice that despite the capital structure has changed the Equity and so NET
assets have remained the same as bonus issue does not involve cash inflow.
S6- Now work out the rights issue that is calc the no of shares held after the bonus issue which is 150000+ 50000(BONUS SHARES)=200 000 shares
S7- Find the no of rights shares- 200 000/4 which is 50 000 shares.
S8- The value of these shares will be 50 000 x $1.20 (nominal value + Premium)= $60 000
S9- The bank bal is increased by $60 000. So the net current assets now become $185 000 which is added to the NCA
S10- This gives a NET ASSETS of $ 435 000 (B)
Hope u understand, jst follow the steps!!

 

[lxelle]

Hi Ixelle...here are the solutions:
Question5- For simplicity use the Trade receivables a/c where the opening BAL is $46000, credit sales $280000 (80 % of Total sales)
Now concerning Receipts!! - 98% represent $303 800 and so find for 100% which is $310000 which is credited in the TR a/c and so finally the ans is B.

Question20- make sure u know that bonus issue does not affect the cash balance. Consider the following steps.
S1- Work out the bonus issue first:
S2- Find the no of shares held @ present i.e 150 000 shares
S3- Find the no of bonus shares which is 150000/3= 50 000 bonus shares
S4- Find the bonus shares value which is 50 000 x$1= $ 50 000
S5 - Then CR OSC by 50 000 and DR the Share premium by 50 000, u`ll notice that despite the capital structure has changed the Equity and so NET
assets have remained the same as bonus issue does not involve cash inflow.
S6- Now work out the rights issue that is calc the no of shares held after the bonus issue which is 150000+ 50000(BONUS SHARES)=200 000 shares
S7- Find the no of rights shares- 200 000/4 which is 50 000 shares.
S8- The value of these shares will be 50 000 x $1.20 (nominal value + Premium)= $60 000
S9- The bank bal is increased by $60 000. So the net current assets now become $185 000 which is added to the NCA
S10- This gives a NET ASSETS of $ 435 000 (B)
Hope u understand, jst follow the steps!!

THANKSSSS..

 

[lxelle]

Hi Ixelle...here are the solutions:
Question5- For simplicity use the Trade receivables a/c where the opening BAL is $46000, credit sales $280000 (80 % of Total sales)
Now concerning Receipts!! - 98% represent $303 800 and so find for 100% which is $310000 which is credited in the TR a/c and so finally the ans is B.

Question20- make sure u know that bonus issue does not affect the cash balance. Consider the following steps.
S1- Work out the bonus issue first:
S2- Find the no of shares held @ present i.e 150 000 shares
S3- Find the no of bonus shares which is 150000/3= 50 000 bonus shares
S4- Find the bonus shares value which is 50 000 x$1= $ 50 000
S5 - Then CR OSC by 50 000 and DR the Share premium by 50 000, u`ll notice that despite the capital structure has changed the Equity and so NET
assets have remained the same as bonus issue does not involve cash inflow.
S6- Now work out the rights issue that is calc the no of shares held after the bonus issue which is 150000+ 50000(BONUS SHARES)=200 000 shares
S7- Find the no of rights shares- 200 000/4 which is 50 000 shares.
S8- The value of these shares will be 50 000 x $1.20 (nominal value + Premium)= $60 000
S9- The bank bal is increased by $60 000. So the net current assets now become $185 000 which is added to the NCA
S10- This gives a NET ASSETS of $ 435 000 (B)
Hope u understand, jst follow the steps!!

http://papers.xtremepapers.com/CIE/...AS Level/Accounting (9706)/9706_s11_qp_13.pdf question 5 and 8 pleaseeee